Walmart Stock Drops 2.15% Amid Tariff Controversy, Store Closures

On April 7, 2025, Walmart's stock experienced a 2.15% drop in pre-market trading, reflecting investor concerns and market dynamics.

Walmart has been under scrutiny for its approach to handling increased tariffs, particularly its demand that Chinese suppliers bear the full cost of new tariffs. This policy has sparked controversy and led to a warning from China's Ministry of Commerce, which cautioned Walmart against unilaterally shifting costs to suppliers. Despite this, Walmart has maintained its stance, leveraging its significant reliance on Chinese suppliers to exert pressure.

In addition to tariff-related issues, Walmart has been facing challenges in its physical retail operations. The company recently announced the closure of its Walmart Europe City store in Wenzhou, marking the third store closure in the region. This move is part of a broader trend of Walmart reducing its physical footprint in China, with several other stores across major cities also slated for closure. The closures are attributed to strategic adjustments and the expiration of leases, although the company has indicated that some stores may reopen after renovations.

Despite these challenges, Walmart's overall financial performance remains robust. The company reported a 5.4% year-over-year increase in revenue for the first three quarters of the 2025 fiscal year, with operating profits up by 8.8%. In China, Walmart's Sam's Club membership stores have been a bright spot, contributing significantly to the company's growth in the region. With 50 stores and 60,000 members, Sam's Club has seen a 30% increase in revenue, highlighting its strategic importance to Walmart's operations in China.